my opinion is "YES". The reason why I even asked is that this American friend strongly suggested never use it since it carries sexual suggestiveness. I, however, believe the usage heavily depends on context.
First explanation of "Naughty" popping up from google says:
(especially of children) disobedient; badly behaved.
"you've been a really naughty boy"
only 2nd explanation, and it's used informally, says:
mildly rude or indecent, typically because related to sex.
Also, I found this video, in which "naughty" was used three times for kids who seem not "behaving themselves":
The teacher thought he was just a naughty kid We are not just naughty, we are just kids with ... Not all kids with ADHD just play old naughty
while the video was from BBC, I don't think it's a sole British English thing.
It seems overwhelming evidences support my claims. Still, what do you think of "naughty"?